Keep renting, or buy? Run both futures.
The honest version of the question: buying builds equity, but renting keeps your cash invested and compounding. Compare what each path costs monthly and where your net wealth lands at 5 and 10 years, with the difference invested, not ignored.
Where you are now
The home you'd buy
Assumptions
Two futures, side by side
The classic trade: buying costs ≈ $1,103/mo more today, and leaves you ≈ $16,647 ahead by year 10, pulling ahead around year 7
Net position over ten years; dots mark the table's year 5 and 10
If you keep renting
If you buy
Cash to get started
$32,000 stays invested
$20,000 down + $12,000 closing
Monthly cost, year 1
$2,400/mo
$3,503/mo
The monthly difference
+$1,103/mo invested
—
Housing cost in year 10
$3,131/mo
$3,582/mo
Net position, year 5
$111,374
$106,511
Net position, year 10
$195,837
$212,484
Under 20% down adds ≈ $174/mo of mortgage insurance to the payment; it drops off automatically as appreciation and paydown build equity past 20%.
Net position counts the renter's invested cash and the owner's home equity, with whichever side pays less each year investing the difference at your chosen return. Home values grow at your appreciation rate, rent at your rent-growth rate, and taxes, insurance, maintenance, and dues track the home's value. Renter's insurance, security deposits, tax deductions, and the cost of an eventual sale are left out. Estimates from your inputs, not a quote, tax advice, or investment advice.
Numbers look good? Make them real.
These are honest ballparks built on national averages. Your real quote comes from lenders competing for your actual file, and getting it costs nothing.
Straight answers
Isn't renting just throwing money away?
No, and this calculator refuses to pretend otherwise. Rent buys you housing plus flexibility, and the cash you didn't put into a down payment can be invested and compound. Buying converts part of each payment into equity, but early on most of it goes to interest, and closing costs put you behind on day one. Which path wins depends on your numbers and your timeline; that's exactly what the comparison shows.
What does 'invest the difference' mean here?
Two things. First, the cash a buyer would spend on the down payment and closing costs stays invested on the renting path from day one. Second, in any year where one path costs less per month, that side invests the gap at your chosen return. Early on the renter usually invests; once rent growth passes the fixed loan payment, the flow reverses. It's the honest version of the comparison, and it's the version we run.
How much do I actually need to buy?
Less than the 20% legend. First loans start at 3 to 3.5% down, assistance programs can cover up to 5% of the price, and gift funds count. The calculator defaults to 5% down so the comparison reflects how first-time buyers actually buy; set it to your real number and watch what changes.
When does buying pull ahead?
The chart marks the exact crossover year for your inputs. The pattern behind it: closing costs put buying behind at the start, then equity from paydown and appreciation compounds while rent keeps climbing. The longer you stay, the more buying wins; if you might move within a couple of years, renting often keeps the lead. That's why the honest answer is a chart, not a slogan.
What's included in the monthly cost of owning?
The whole bill: principal and interest, estimated property taxes and homeowner's insurance, maintenance as a percent of the home's value, HOA dues if any, and mortgage insurance when the down payment is under 20%. Owning costs more than the mortgage payment, and pretending otherwise is how people end up house-poor. The tooltip on each row shows what's counted.
What about the tax breaks for owning?
Left out on purpose. Since the standard deduction grew, most homeowners no longer itemize, so the mortgage interest deduction is worth nothing to a majority of buyers. If your situation is the exception, the buy path gets a little better than shown; your CPA can put a number on it.
The verdict says keep renting. Will you still talk to me?
Absolutely, and we'll tell you the same thing the calculator did. Sometimes the right advice is 'rent another year and let your savings grow', and saying so is how we earn the call when you are ready. If the numbers are close, a real quote instead of a national average is usually the tiebreaker.
Two minutes. No obligation. Real numbers.
If buying wins your numbers, the next step is a real rate instead of a national average, and it costs nothing to get.
Guthix Lending • NMLS# 2672037 · Calculator results are estimates for illustration only, based on your inputs and national average rates. They are not a quote, a pre-approval, or a commitment to lend. Your actual rate, payment, and eligibility depend on your full application, credit, and property. Not all borrowers will qualify.